Thus, the moving average cost of the green widgets was $5 per unit at the beginning of the month, and $5.88 at the end of the month. We will repeat the example, but now include several sales. Remember that we recalculate the moving average after every transaction.
Finally, pass-through billing is an arrangement in which a laboratory tests samples provided by a physician for a fee, and allows the physician to profit by billing payers directly for the laboratory services for more than the physician paid the laboratory. This approach is typically avoided for Medicare and Medicaid patients by most physicians.
The lure of this type of pricing model is the perception that if the PBM is not generating any revenue through margin pricing (i.e. paying the pharmacy less than the amount the PBM is billing the client), a pass-through contract will result in lower plan costs.Unfortunately, this is not always the outcome.f you are paying $0 administrative fees, and $0 dispensing fees for your mail service claims the PBM is billing based on margin pricing. With a true pass-through the typical cost base per claim at mail service is between $6 and $10(a combination of fixed and variable costs).